Migration Linked Microinsurance. Barbara Magnoni November 2010

Transcription

1 Migration Linked Microinsurance Barbara Magnoni November

2 Global Picture of Migrants Remittances 214 million people lived outside their country of origin in 2010 Remittance flows to developing countries approx. US$347 bill in 2010 Most remittances flow from developed to developing countries, and these are more likely to use formal channels Predominance in South Asia, former USSR & CIS, Mexico and S. America E. Europe US$51 bill LAC US$68 bill Near East Africa US$28 bill US$39 bill Asia & Oceania: US$113 bill Source: IFAD Source: IFAD

3 Migration Linked Insurance Models Home Country Migrant s family members are organized into savings clubs through the church Insurance policies are bundled with a savings card (SparxX) and distributed through the clubs Claims handled through Pioneer in Philippines Host Country Migrants can also buy SparxX cards in Hong Kong through local Pioneer rep and pay in Hong Kong Home Life, Accident, Medical Insurance Pioneer Group, Philippines Hybrid Health Insurance Sekure healthcare Host Repatriation Insurance La Caixa, Spain Host Country Bankassurance model markets insurance to migrants with bank accounts, loans etc. in Spain Members are signed up at La Caixa branches and pay in branches Home Country Claim through host country service if no one is able to claim in host country USA Members are signed up through employers Premiums are paid through employers In-network medical care without prepayment Mexico Discounted medical care with prepayment Claims and reimbursement handled in the US 3

4 Phases of the Insurance Process Development Process Servicing and Claims Administration Marketing and Sales Premium Collection 4

5 Servicing and Claims Administra tion Developm ent Process Premium Collection Marketing and Sales Development Process Home-based models typically understand the migrant and their families through direct contact or by working with an agent Home-based models can cover the migrants family s needs as well as the migrants Host-based models have shown less creative attempts to meet migrants needs: life/repatriation disability (limited programs) Home-based Family & Migrant as a Unit Host-based Migrant 5

6 Servicing and Claims Administra tion Developm ent Process Marketing and Sales Marketing and Sales Premium Collection Home-based models are limited by legal and regulatory restrictions that make it difficult for s and intermediaries to sell insurance abroad Home-based models can market through existing channels who are close to the population who work through families Host-based models can market to migrants in their host countries but face barriers: Host-based models often must use licensed as brokers/agents Challenge of obtaining signatures, documentation from migrants Cost of delivery in host country can be high as few low cost channels exist Home-based Home based channel (Bank/MFI, etc) Family Host-based Host based channel (Bank, MTA, Diaspora group) Migrant 5

7 Servicing and Claims Administra tion Developm ent Process Marketing and Sales Premium Collection Premium Collection Home-based models typically tap into a remittance received from migrant in cash or bank account Host-based models easier when migrants are banked. The MTA is otherwise the main transactional relationship Cost of remittance is important (Singapore-Bangladesh $4.50 vs. Australia Papua New Guinea $43 for a $200 transfer) Not all remittances are smooth Beginning to see online platforms or mobile phone services to facilitate payments- La Positiva/Western Union Antiterrorism and Money Laundering laws apply Home-based Migrant or remittance recipient (family) Savings account, cash from remittance receipt, online transfers Host-based Migrant Savings account, cash, or with other transaction (remittance) 5

8 Servicing and Claims Administra tion Developm ent Process Premium Collection Marketing and Sales Servicing and Claims Administration Issuing policies and paying claims across borders involves logistical difficulties Partnerships with service providers or brokers can facilitate administration Banorte life and repatriation insurance for Mexicans in the US and Canada partners with a US repatriation company Host country claims can be difficult when a migrants family is abroad Cross-border customer service and information-sharing is often weak Indonesia requires migrant placement agencies to provide migrants with a package of insurance products, but many migrants are not even aware that they have insurance Home-based Family Insurer, Health Care Provider, or local Broker Host-based Migrant, Legal representative, or Family Host country broker or 3 rd party service 5

9 What Next? Easier to scale up host models because they have fewer legal restrictions, larger markets (can market to migrants from any country), and can market directly to migrants Home models products can be more demand-driven, and can cover the risks of families on both sides of the border, but are challenged by legal and delivery hurdles that make efficient delivery difficult Need to explore more hybrid models with multinational firms on both sides of the border Greater effort to partner with MTAs are needed to tap into remittance flows Still need significant advocacy with regulators, s and other actors 8

10 10 date:d:s:d xml UTF-8 nydn 0news boro all no d Thank You Barbara Magnoni EA Consultants bmagnoni@eac-global.com 10